New PayPal NFT Policy Will Stop Supporting User Protection

According to , starting May 20, 2024, PayPal will exclude NFT purchases from its buyer protection plan. Additionally, NFT sales surpassing $10,000 will no longer be safeguarded against false claims and refunds.

While PayPal issued a notice on March 21 regarding these adjustments, they have only come to light recently. Under the “Amendments to PayPals Purchase Protection Program,” NFTs are explicitly excluded from eligibility for buyer protection. Similarly, the seller protection plan will no longer cover NFT transactions exceeding $10,000.01.

The new PayPal NFT policy marks a significant shift in its approach to high-value NFT transactions, impacting the security measures available to both buyers and sellers. Previously, PayPal provided protection for NFT transactions, offering refunds in case of misrepresented items or payment issues.

While some users were unable to log in to the platform, others were talking on X about how PayPal was ignoring their complaints.

PayPals Evolving Role in Blockchain and NFT Ecosystem

PayPal NFT policy comes amid its integration of cryptocurrency, initiated in 2022. The company has been actively pursuing blockchain and NFT-related innovations, which is evident through numerous patents and the recent launch of a service supporting international payments using the stablecoin PYUSD.

Notably, PayPals strides in blockchain technology include a patent application filed last year for an NFT purchase and transfer system, underscoring its commitment to advancing within the blockchain ecosystem.